Question: Please answer 13 and 14, and explain every step. 13. CoffeeCarts has a cost of equity of 15%, has an effective cost of debt of

Please answer 13 and 14, and explain every step.

Please answer 13 and 14, and explain every step. 13. CoffeeCarts has

13. CoffeeCarts has a cost of equity of 15%, has an effective cost of debt of 4%, and is financed 70% with equity and 30% with debt. What is this firm's WACC? 14. AllCity, Inc., is financed 40% with debt, 10% with preferred stock, and 50% with com- mon stock. Its pretax cost of debt is 6%, its preferred stock pays an annual dividend of $2.50 and is priced at $30. It has an equity beta of 1.1. Assume the risk-free rate is 2%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC

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